A Fortune Global 500 company has just completed the fund filing.
Crossing the cold winter, a new journey for the venture capital industry begins.
This article has 4,266 words and takes about 6.1 minutes to read.
Author | Wang Tao Editor | Wu Ren
Source | #The Capital
(ID: thecapital)
With the development of the financial market and the diversification of corporate strategic layouts, more and more large enterprises are venturing into the private equity field. The latest entrant is China Telecom, the leading player in China's telecommunications industry.
According to the latest news, on June 16, 2025, China Telecom Private Equity Fund Management Co., Ltd. (hereinafter referred to as "China Telecom Private Equity") completed its registration with the Asset Management Association of China. The company has a registered capital of 200 million yuan and a paid - in capital of 50 million yuan. Its registered address is in Shunyi District, Beijing, and its office is in Xicheng District, Beijing. Currently, it has six full - time employees. China Telecom Private Equity is 100% owned by China Telecom Group Investment Co., Ltd., and its business mainly focuses on cutting - edge technology fields such as cloud computing and network information security.
Public information shows that China Telecom Private Equity was established as early as January 20, 2022, but it didn't complete the registration as a private equity fund manager until June 2025. Before completing the registration, China Telecom Private Equity also underwent changes in its legal representative and senior management. On April 22, 2025, the legal representative of the company changed from Zhang Wei to Xing Xiaorui, and the senior management team was also adjusted accordingly. Xing Xiaorui has previously held important positions in the Ministry of Posts and Telecommunications and China Telecom Group Corporation, with rich industry experience.
By establishing a private equity fund company, China Telecom can not only provide financial support for its strategic layout in fields such as cloud computing and network information security but also further consolidate its leading position in the telecommunications industry by investing in the upstream and downstream industrial chains.
With the official registration of China Telecom Private Equity, its future performance in the private equity market is even more worthy of expectation.
China Telecom's Investment Layout
According to the 2024 Fortune Global 500 list, China Telecom Group Co., Ltd. ranked 135th globally with revenues of $87.961 billion and 7th in the telecommunications industry. Such revenue - generating ability gives it sufficient confidence to layout in the private equity field.
In fact, China Telecom's layout in the private equity fund field has a long history and is not a recent move. If we delve into China Telecom's private equity fund investment history and investment fields, we can clearly see it as a strategic layout by this telecommunications industry giant under the trend of the integration of finance and technology.
As early as January 20, 2022, China Telecom Private Equity Fund Management Co., Ltd. was established with a registered capital of 200 million yuan. This company is 100% controlled by China Telecom Group Investment Co., Ltd. and is an important part of China Telecom Group's layout in the private equity fund management field. It completed its registration on June 16, 2025, and officially became a private equity and venture capital fund manager.
China Telecom's private equity funds mainly focus on the telecommunications and information technology industrial chain. As a leading enterprise in the telecommunications industry, its investments cover upstream and downstream sectors such as telecommunications equipment manufacturing, cloud services, big data, and artificial intelligence. For example, in 2024, China Telecom Group invested in companies such as Honor, Guoxin Xinwang, Huixin Hehong, Kuppers, Shitong Hengqi, and Chengdu Zhongkewei. These companies have unique advantages in fields such as telecommunications equipment, software services, and semiconductors. Through these investments, China Telecom can further improve its industrial chain layout and enhance its core competitiveness in the telecommunications field.
Meanwhile, cloud computing and big data, as the core directions of future information technology development, are also key investment areas for China Telecom's private equity funds. By investing in relevant enterprises, China Telecom can enhance its technical strength and service capabilities in the cloud computing and big data fields. For example, China Telecom has deployed cloud computing centers in multiple cities across the country, and its investment projects further improve this ecosystem. Network information security is also one of the key areas it focuses on. With the acceleration of digital transformation, the importance of network information security has become increasingly prominent. By investing in relevant enterprises, China Telecom can further enhance its network security protection capabilities and provide users with convenient and secure communication services.
In addition, China Telecom is also actively deploying in strategic emerging industries such as artificial intelligence and smart cities. In December 2023, China Telecom Group, Chengdu Advanced Capital Management Co., Ltd., and China State - owned Enterprise Structural Adjustment Fund Phase II Co., Ltd. jointly established Jinyi Digital Intelligence Private Equity Fund Management Co., Ltd., which reflects its strategic layout in fields such as supercomputing centers and smart cities.
Looking back at the development history of China Telecom's private equity funds, its investment strategy has been continuously adjusted with changes in market demand and technological development. In recent years, China Telecom Group Investment Co., Ltd. has been very active in the market, with an expanding investment scale and gradually expanding investment fields. From early - stage telecommunications equipment manufacturing to today's cutting - edge fields such as cloud computing, big data, and artificial intelligence, China Telecom has achieved the extension of the industrial chain and the integration of strategic resources through private equity fund investments. These investments not only strengthen cooperation with upstream and downstream enterprises in the industrial chain, enhance market competitiveness but also open up new profit growth points for the enterprise and promote technological innovation and industrial upgrading.
Currently, China Telecom Group has invested in many start - up and growth - stage enterprises with forward - looking technologies through private equity funds. Among these invested enterprises, some have achieved remarkable results in specific fields, such as making technological breakthroughs in artificial intelligence algorithms, big data analysis tools, and communication chips. The growth of these invested enterprises has also brought substantial investment returns to China Telecom, increasing the investment income of the fund and demonstrating the potential and value of its private equity fund investments.
In addition, private equity funds also provide an opportunity for in - depth cooperation between China Telecom and the invested enterprises. For example, in the field of cloud computing, China Telecom and the invested enterprises jointly develop new cloud computing solutions to improve the performance and stability of cloud services; in the field of network security, they jointly develop advanced security protection technologies to enhance network security protection capabilities. This in - depth cooperation not only contributes to the technological development of the invested enterprises but also provides strong technical support for the upgrading of China Telecom's products and services, achieving mutual benefit and win - win results for both parties.
China Telecom's layout in the private equity fund field is an important part of its diversified development strategy. Through private equity fund investments, China Telecom further expands its influence in the telecommunications and related fields, achieves the extension of the industrial chain and the integration of strategic resources, and lays a solid foundation for future sustainable development.
With the official registration of China Telecom Private Equity Fund Management Co., Ltd., its future performance in the private equity market is even more worthy of expectation.
State - owned Enterprises' Investment in Key Strategic Industries
State - owned enterprises like China Telecom are actively participating in private equity funds and have become an important force in the capital market.
China Mobile, which is in the same telecommunications track as China Telecom, is a typical example. Its 5G industry fund focuses on the R & D of 5G technology, application development, and the integration of the relevant industrial chain. By investing in innovative enterprises in fields such as 5G chips, base station equipment, and communication software, China Mobile not only strengthens its technical strength in the 5G field but also promotes technological upgrading and business innovation in the entire telecommunications industry. This investment strategy guided by national strategies enables state - owned enterprises to achieve a win - win situation between economic and social benefits in the private equity fund field.
In addition, PetroChina's industrial investment fund focuses on technological innovation and resource development in the energy field. Its investment directions include key areas such as new energy, oil and gas exploration, and energy conservation and environmental protection. Through the operation of private equity funds, PetroChina not only enhances its energy security capabilities but also promotes the green transformation and high - quality development of the energy industry.
In terms of investment strategies, state - owned enterprises often adopt a prudent and forward - looking investment approach. For China Mobile's 5G industry fund, its investment strategy not only focuses on the R & D innovation of 5G technology but also attaches importance to the commercialization of 5G applications. The fund comprehensively layouts the 5G industrial chain by investing in key links such as 5G chip design, base station equipment manufacturing, and communication software development. In addition, the fund also conducts application pilots and commercial promotions of 5G technology together with the invested enterprises, accelerating the popularization of 5G technology in fields such as smart cities, industrial Internet, and autonomous driving.
PetroChina's industrial investment fund pays more attention to risk control and long - term returns in its investment strategy. Its investment projects usually have a long investment cycle and high technical thresholds but also have high market potential and strategic value. The fund cooperates with top - notch energy enterprises and research institutions at home and abroad to jointly carry out energy technology innovation and resource development projects, ensuring the stability and profitability of the investment projects.
Through private equity fund investments, state - owned enterprises not only bring substantial financial returns to themselves but also provide strong support for the transformation and upgrading of the national economy and the development of strategic emerging industries. Against the background of China's high - quality economic development, state - owned enterprises like China Telecom achieve the preservation and appreciation of state - owned assets through private equity fund investments, promote the rapid development of strategic emerging industries, and create significant economic and environmental benefits for society at the same time.
In the future, as state - owned enterprises' private equity fund investments continue to deepen and innovate, their role in the capital market will become more prominent, injecting more impetus into China's economic transformation, upgrading, and sustainable development.
Is the Enthusiasm of LPs Returning?
Almost at the same time, a long - hidden giant LP has returned.
Previously, there were frequent reports about the contraction of Alibaba's strategic investment department, the dissolution of its strategic investment funds, and the divestiture of non - core assets. However, recent developments show that Alibaba is once again making efforts in the investment field.
According to the latest information from Qichacha, recently, Wuxian Qihang Haihe (Tianjin) Venture Capital Partnership (Limited Partnership) was officially established, with a capital contribution of approximately 140 million yuan. The company's business scope includes equity investment, investment management, and asset management of private equity funds, which can only be officially carried out after completing registration and filing with the Asset Management Association of China; in addition, it also covers venture capital, limited to investments in unlisted enterprises.
In the list of partners, the name of Hangzhou Alibaba Venture Capital Co., Ltd. is particularly eye - catching. It participated in the capital contribution together with Tianjin Tiankai Jiuan Haihe Haitang Equity Investment Fund Partnership, Beijing Haitian Ruisheng Technology Co., Ltd., etc.
In fact, in the past few years, Alibaba has been an important participant in the venture capital industry, frequently appearing as an LP (Limited Partner) and investing in many GPs (General Partners) such as Yuansheng Capital, Amiba Capital, Matrix Partners China, CDH Investments, and Yuanjing Capital. These investments were mainly concentrated in multiple industries such as information technology, enterprise services, healthcare, and cultural and entertainment consumption.
However, in the past two years, the situation of Alibaba directly participating in investments as an LP has gradually decreased. Now, after a series of asset sales, Alibaba has returned to the private equity fund as an LP, which undoubtedly has attracted wide attention from the market. This is in sharp contrast to Alibaba's previous large - scale strategic investment behavior aiming for control rights.
However, looking back from the beginning of 2025 to the present, Alibaba has indeed carried out a series of asset disposal actions. For example, Alibaba sold its controlling stake in Gaoxin Retail (the parent company of RT - Mart) to DCP Capital for HK$13.1 billion; at the same time, it also transferred its equity in Intime Retail for approximately 7.4 billion yuan...
The outside world generally believes that Alibaba's recent actions demonstrate its strategic determination to gradually divest non - core businesses and focus on its core main business. Through a series of drastic "streamlining" actions, Alibaba has successfully recovered more than 2 billion yuan in funds.
Now, Alibaba's return to the private equity market as an LP seems to indicate that this giant has not given up on its layout for future opportunities.
Actually, since China tightened its IPO policies in 2024, the pace of LP contributions in the private equity market's fundraising end has further slowed down. The total committed capital of institutional LPs to private equity funds throughout the year was approximately 1.48 trillion yuan, showing a continuous decline for four years and a year - on - year decrease of 19.57% compared to the previous year.
Against the background of a shrinking macro - environment, blocked exit channels, and increasing fundraising difficulties, LPs have become more cautious overall.
However, since this year, the long - dormant enthusiasm in the market seems to have been reignited, and many industrial giants have returned to the role of LPs.
Not long ago, Zhaoxi Capital announced that its second - phase RMB main fund had completed its first - close signing, with industrial LPs accounting for nearly 60% of the 700 - million - yuan fundraising. The names of leading enterprises in the photovoltaic industry such as Maiwei Co., Ltd., Canadian Solar Inc., and Chint Electric Co., Ltd., as well as energy groups such as Hichen Energy, appeared frequently in the list of contributors, and the reinvestment rate of old LPs reached 50%.
In May, CATL and Han's Laser Technology Industry Group Co., Ltd. successively announced that they would jointly participate in investing in a private equity investment fund with a scale of approximately $1.5 billion. The fund manager is Lochpine Capital, a venture capital institution in which CATL has a stake. In other words, CATL not only invests real money as an LP but also gets directly involved in VC.
On May 14, Qingdao held a conference on the ecological development of embodied intelligent robots. During this period, Qingdao Haier Venture Capital Co., Ltd. participated in the establishment of the Qingdao Embodied Intelligent Robot Industry Fund, with a target scale of up to 10 billion yuan, aiming to make the northern region an innovation high - ground for the embodied intelligent robot industry.
Suzhou Junming Zhiyuan Venture Capital Partnership under Fosun Pharma participated in the Henan Zhongyuan Medical Science City Xing Future Equity Investment Fund. The fund has a capital contribution of 2.5 billion yuan and focuses on supporting the transformation of scientific and technological achievements and investment promotion projects in Zhongyuan Medical Science City. In addition, Fosun Pharma has also invested in the establishment of medical funds in Shenzhen, Shandong, and other places, actively deploying in fields such as medicine and medical devices.
Examples like these are numerous this year, seemingly becoming a positive signal for the warming of the venture capital industry. The train has started, crossing the cold winter, and a new journey for the venture capital industry begins.
This article is from the WeChat official account “The Capital” (ID: thecapital), author: Wang Tao, published by 36Kr with authorization.